The Business Use of Home form can be used with your Schedule C business. However, it can no longer be claimed as an itemized deduction on your Schedule A for W-2 employees (Tax Cuts and Jobs Act).
According to the IRS. you can claim expenses related to the Business Use of Home on your Schedule C if you use part of your home as:
- "Exclusively and regularly as your principal place of business for your trade or business;
- Exclusively and regularly as a place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business;
- A separate structure that's not attached to your home used exclusively and regularly in connection with your trade or business;
- On a regular basis for storage of inventory or product samples used in your trade or business of selling products at retail or wholesale;
- For rental use; or
- As a daycare facility"
The portion being claimed must be used:
- On a regular basis (you cannot store inventory one time and claim expenses)
- Exclusively for business and cannot be used for personal use
Additional Information:
See: What expenses can you claim on the Business Use of Home form?